Slide 1: FedEx Corporation Fiscal Third Quarter 2025 Earnings
FedEx Corporation Fiscal Third Quarter 2025 Earnings | March 20, 2025 1 VP of Investor Relations 2 2 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this presentation may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optimization of our network thro
Slide 3: Q3 FY25 overview
Q3 FY25 overview Q3 FY25 Results • Revenue grew YoY for the first time this fiscal year Revenue $22.2B • DRIVE savings continued to build: $600 million 2% YoY YoY benefit during the quarter • Profit improvement achieved despite the USPS Adjusted operating $1.51B contract expiration and severe weathe
Slide 4: Transportation segment revenue performance
EVP & Chief Customer Officer 7 7 Transportation segment revenue performance Federal Express FedEx Freight 3% $19.2B (5%) $18.7B $2.2B $2.1B Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 • Growth driven by increased demand for our • Decrease driven by fewer shipments, lower fuel deferred services and higher base y
Slide 5: Volume trends by service
Volume trends by service Q2 FY25 average daily volume / shipments Q3 FY25 average daily volume / shipments Federal Express U.S. Priority and Deferred Package YoY Federal Express International Export Package YoY Sep Oct Nov Dec Jan Feb Sep Oct Nov Dec Jan Feb 10% 9% 10% 9% 10% 2% 1% 0% 4% (3%) (2%) (
Slide 6: Strategic commercial priorities
Strategic commercial priorities Focused on profitable growth • Targeting healthcare, automotive, U.S. domestic e- commerce, global air freight, and European sectors • Onboarding $400 million of annualized healthcare business Expanded FedEx Surround Monitoring and Intervention Suite • Now offered in
Slide 7: Transportation segment operating income performance
Transportation segment operating income performance Federal Express FedEx Freight 17% (23%) $1,424M $1,218M $341M $261M Q3 FY24* Q3 FY25* Q3 FY24 Q3 FY25 • Adjusted operating income increased due to • Operating income declined due to lower fuel prices DRIVE savings, base yield improvement, and and c
Slide 8: FY25 outlook
FY25 outlook Dec 2024 Mar 2025 • Revising revenue, adjusted diluted EPS and Revenue Approximately Flat Flat to slightly down capital spend outlook • Global industrial weakness continues to Adjusted constrain demand; maintaining focus on $19.00 - $20.00 $18.00 - $18.60 revenue quality Diluted EPS* •
Slide 9: Capital allocation priorities
Capital allocation priorities Continuing to reduce capital intensity while increasing capital returns $6.8B $6.2B $5.2B $4.9B $2.5B Stock repurchases 7.6% 7.2% of of 6.8% of 6.8% 5.9%ofof <6.5% of $3.8B* revenue Dividend revenue revenue revenue revenue revenue FY25E capital return $1.3B FY22 FY23 FY
Slide 10: Q&A / Appendix
Q&A Q&A 19 19 19 Appendix 20 20 10
Slide 11: Non-GAAP financial measures
Non-GAAP financial measures FY25 EPS and ETR forecasts Our fiscal 2025 diluted earnings per share (“EPS”) forecast is a non-GAAP financial measure because it excludes fiscal 2025 mark-to-market (“MTM”) retirement plans accounting adjustments and estimated costs related to business optimization initi
Slide 12: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY25 Diluted Earnings Per Share Forecast Full-Year FY25 Outlook Diluted Earnings Dollars in millions, except EPS Adjustments Per Share Diluted earnings per share before MTM retirement plans accounting adjustments (non-GAAP)6 $15.15 to $15.75 Business optimization cos